2019 Financial Results

The_Wookie

Queenslander
Jul 2, 2010
32,555
30,008
Launceston
AFL Club
Carlton
The ability of these 'handouts' to turn a loss into a profit, I'll call it for what it is.
I'm happy to acknowledge the basic club distribution, just want more transparency.
Peter Gordons comments are considered, perhaps consider them, preferably in another thread, not here. Not personal.
A lot of what you call handouts are contractually obligated to be paid by the AFL to the clubs, since the AFL centrally collects funding for many Melbourne clubs via stadium and licencing contracts.

This includes but isnt limited to: AFLW, signage at Docklands and the MCG, pourage rights at Docklands and the MCG, afl membership, corporate box revenues from Docklands, catering income, prize money, licensing income from vvarious merchandise and image rights, and more. It may also include the $100k a game the MCC pays AFL clubs per home game, since its in the AFL usage agreement.

The AFL made the following other distributions to the clubs throughout the 2018 season, including but not limited to AFLW, travel subsidies, prizemoney, AFL membership-related distributions, AFL commercial partner payments, AFL-facilitated stadium payments and licensing distributions.
ref: 2018 AFL Annual report pg 157.

Now there are other distributions made to clubs like the Bulldogs, North and Demons to maintain a level playing field. This has been the case since 2002. St Kilda is a more recent addition to the list, but is taking its time.
 

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Ned_Flanders

Premium Platinum
Aug 22, 2009
48,225
89,215
AFL Club
Richmond
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76'ers
Fitness profitability is low because it was still expanding rapidly and had a lot of startup expenses. Given the growth has slowed (or at least, I think it has, I haven't been watching THAT closely), you'd hope it would be more profitable now.
Yep

Last year the Murray contract was just underway, and the program posted a heavy loss.

Fact it's now profitable is a very good sign because my understanding was they were still in the gear up phase for that contract in this budget
 

telsor

Hall of Famer
Aug 29, 2004
30,871
28,085
Here
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The ability of these 'handouts' to turn a loss into a profit, I'll call it for what it is.
I'm happy to acknowledge the basic club distribution, just want more transparency.
Peter Gordons comments are considered, perhaps consider them, preferably in another thread, not here. Not personal.

Except, they quite probably don't.

If a club is budgetting for 40M revenue + $2M of what you would call a handout, and as a result of that budget, they spend $41.5M and pay $500K off their debts, thus booking a $500K profit, that's simply working within their budgetted revenue, and thus good management.

Had they not received that 'extra' $2M, then as good managers, they may well have cut spending (minimum salary cap, one less assistant coach, fewer talent scouts, etc), and thus they could still record a profit, but it would have a negative effect on their on field competitiveness (which is what the AFL hands out these funds for after all).

So no, 'handouts' (however you define them) do not turn aloss into a profit, they just provide more revenue.

But you're not stupid, so you already knew all that, but hey, who cares about reality when you have a chance to complain about Vic clubs, right?
 

Kwality

Brownlow Medallist
Aug 14, 2011
20,175
6,942
Tootgarook
AFL Club
West Coast
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Renault F1
Except, they quite probably don't.

If a club is budgetting for 40M revenue + $2M of what you would call a handout, and as a result of that budget, they spend $41.5M and pay $500K off their debts, thus booking a $500K profit, that's simply working within their budgetted revenue, and thus good management.

Had they not received that 'extra' $2M, then as good managers, they may well have cut spending (minimum salary cap, one less assistant coach, fewer talent scouts, etc), and thus they could still record a profit, but it would have a negative effect on their on field competitiveness (which is what the AFL hands out these funds for after all).

So no, 'handouts' (however you define them) do not turn aloss into a profit, they just provide more revenue.

But you're not stupid, so you already knew all that, but hey, who cares about reality when you have a chance to complain about Vic clubs, right?
Well the difference is I dont believe clubs exercise the level of cost control you credit them with, thats why they publish results not budgets - please no suggestion I'm asking for budgets to be published.

its a PR exercise for the AFL, clubs losing money is not a good look.
 

RussellEbertHandball

Flick pass expert
Nov 16, 2004
57,135
77,170
SE Oz
AFL Club
Port Adelaide
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The Mighty Blacks
The_Wookie I was looking at the 2018 AFL annual report last night and the 10 year summary and noticed that in 2017 the AFL moved $89.9m out of their Future Fund Reserve to Retained Earnings.

That is a book entry and that $89.3m, is in part represented by the $78m cash in the bank at end of 2016 as well as the $30m in receivables and loans due, from AFL Clubs. The later figure at end of 2018 was down to $26m

Also in 2017 they started allocating $20m from annual profits to a Capital Reserve and the note to the 2018 accounts says - The AFL Commission resolved to allocate $120.0 million from 2017 to 2022 to a capital reserve.

Do you know what that relates to as I couldn't find anything about it in the 2017 annual report? If not, do you reckon it relates to the purchase of Docklands Stadium, as the AFL said they would pay off their $200m loan to buy it (+ $80m loan for working capital for the stadium), before 31/12/2025 when they could have paid $30 and had the stadium transferred to them under the 2000 deal to pay $30m up front for the right to take it over in 2025??
 
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The_Wookie

Queenslander
Jul 2, 2010
32,555
30,008
Launceston
AFL Club
Carlton
The_Wookie I was looking at the 2018 AFL annual report last night and the 10 year summary and noticed that in 2017 the AFL moved $89.9m out of their Future Fund Reserve to Retained Earnings.

That is a book entry and that $89.3m, is in part represented by the $78m cash in the bank at end of 2016 as well as the $30m in receivables and loans due, from AFL Clubs. The later figure at end of 2018 was down to $26m

Also in 2017 they started allocating $20m from annual profits to a Capital Reserve and the note to the 2018 accounts says - The AFL Commission resolved to allocate $120.0 million from 2017 to 2022 to a capital reserve.

Do you know what that relates to as I couldn't find anything about it in the 2017 annual report? If not, do you reckon it relates to the purchase of Docklands Stadium, as the AFL said they would pay off their $200m loan to buy it (+ $80m loan for working capital for the stadium), before 31/12/2025 when they could have paid $30 and had the stadium transferred to them under the 2000 deal to pay $30m up front for the right to take it over in 2025??
No idea. Your guess is as good - if not better - than mine
 

RussellEbertHandball

Flick pass expert
Nov 16, 2004
57,135
77,170
SE Oz
AFL Club
Port Adelaide
Other Teams
The Mighty Blacks
Sorry to be picky The_Wookie but have just picked up that the last category in your OP, the WCE figure is their total assets and everyone else is their Net Assets. WCE's 2018 Net Asset position was $77,014,459

Assets
  • West Coast - $106,229,217
  • Hawthorn - $51,592,955
  • Western Bulldogs - $45,804,532
 

juss

Brownlow Medallist
Feb 23, 2009
17,571
22,319
Melbourne
AFL Club
Richmond
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New York Jets
With the AFL looking to "equalise" wherever possible, and things like the soft cap, tax, equalisation handouts, etc.
Does anyone else think being a financially independently strong club is less and less important? It seems the AFL will do their best to equalise it anyway, and let's be honest if a club was in significant cash trouble the AFL can afford to and very likely would bail them out these days.
 

RussellEbertHandball

Flick pass expert
Nov 16, 2004
57,135
77,170
SE Oz
AFL Club
Port Adelaide
Other Teams
The Mighty Blacks
With the AFL looking to "equalise" wherever possible, and things like the soft cap, tax, equalisation handouts, etc.
Does anyone else think being a financially independently strong club is less and less important? It seems the AFL will do their best to equalise it anyway, and let's be honest if a club was in significant cash trouble the AFL can afford to and very likely would bail them out these days.
The real difference is you can publicly tell the AFL to get stuffed if you are financially independent, publicly jump up and down about time slots, whinge about umpires at the pressers etc and the AFL wont say much, where as if you are a financially dependent club, they will tell you to shut up and pull your fickin' head in.
 

Kwality

Brownlow Medallist
Aug 14, 2011
20,175
6,942
Tootgarook
AFL Club
West Coast
Other Teams
Renault F1
With the AFL looking to "equalise" wherever possible, and things like the soft cap, tax, equalisation handouts, etc.
Does anyone else think being a financially independently strong club is less and less important? It seems the AFL will do their best to equalise it anyway, and let's be honest if a club was in significant cash trouble the AFL can afford to and very likely would bail them out these days.
The AFL would love to control the cash of the clubs IMHO, & it would see the lowest common denominator be the norm 👎 .
For example the Eagles model pumps money back into local footy, not just the WAFL, that money would be lost into general revenue.

Dont think anyone really knows where media is going next, its wise to squirrel some away:
in 2017 the AFL moved $89.9m out of their Future Fund Reserve to Retained Earnings.

That is a book entry and that $89.3m, is in part represented by the $78m cash in the bank at end of 2016 as well as the $30m in receivables and loans due, from AFL Clubs. The later figure at end of 2018 was down to $26m

Also in 2017 they started allocating $20m from annual profits to a Capital Reserve and the note to the 2018 accounts says - The AFL Commission resolved to allocate $120.0 million from 2017 to 2022 to a capital reserve.
 

Great8

Brownlow Medallist
Apr 19, 2015
12,506
9,297
AFL Club
Essendon
Other Teams
Manchester United, Juventus,
At least we are kicking goals off field

Debt-free Dons record profit
http://m.essendonfc.com.au/news/2019-11-15/debtfree-dons-record-profit.mobileapp


The Essendon Football Club is debt-free for the first time since 2011, having reduced its borrowings by $3.9 million in 2019, and at the same time increased cash reserves to $6.4 million.
Reporting an overall profit of $3.534 million, inclusive of The Hangar development fundraising income of $3.474 million, the club utilised the surplus of its profit to fully pay down outstanding debt.
At October 31, 2019, excluding the increased level of fundraising associated with The Hangar redevelopment, the club recorded a net operating profit of $60,000 and operating cash surplus of $3.4 million.

The net assets of the club increased to $39.6 million, compared to $36.1 million in 2018.
In 2019, the club achieved record membership of 84,567 - an increase of more than 5,000 over the previous year.
Chief executive officer Xavier Campbell said the clearance of debt was an important step forward for the Bombers.
“It’s a significant outcome for the club to record a profit for a third consecutive year, and importantly, clear all borrowings which has been in line with our projected timeframes to manage the remaining debt the club has held in recent years. It also positions us for the next phase of facility investment over the coming 12 to 18 months,” Campbell said.
“We will incur new debt as we progress the redevelopment, but the basis we now have, combined with our strong cash flows, will position us well to service that debt and repay it within a reasonable timeframe.
“This year, we deliberately increased spend in key strategic areas of the club, most importantly in our core business – football - as well as preparing for the next phase of our facility expansion and strategic growth which is vital for the long-term position of the organisation.
“A significant portion of the cash flow in 2019 has come in the form of grants and donations to assist in the funding of the second phase of The Hangar’s development, which will have a direct impact on strengthening our men’s and women’s football programs as well as our Next Generation Academies for the long-term. It will also play a part in ensuring the club continues to play a significant role in the communities in which it operates.
“Our loyal members and supporters remain at the forefront of our organisation, with our membership surpassing 80,000 for the first time in our club’s history. I wish to again recognise the tremendous loyalty of our membership base in 2019, and we look forward to your continued support for the upcoming season next year.
“Overall, the club is in a strong financial position and we continue to be well placed to support our players as we strive for the ultimate on-field success and with a strong base from which to launch our expansion project for The Hangar.”
Key points of the club’s 2019 financial result:
  • Net operating profit, excluding additional fundraising for The Hangar redevelopment, of $60,000 and operating cash surplus of $3.4 million.
  • Membership revenue increased by $500,000 as a result of the membership tally increasing from 79,318 to 84,567.
  • The club reduced its borrowings by $3.9 million to be debt-free at the end of the year, with cash reserves of $6 million.
  • Net assets of the club were $39.6 million, compared with $36.1 million in 2018.
  • An increase of $673,000 in match receipts/stadium revenue.
  • Increased investment of $500,000 in non-player-related football investment.
The 2019 annual report is available here. The Annual General Meeting (AGM) will be held on Thursday, December 5 at Marvel Stadium, commencing at 6:30pm.
Directors Andrew Muir and Simon Madden will be declared re-elected at the AGM as the pair were the only candidates to nominate for election to the Club’s Board by the closing date of October 31, 2019.
 

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Ned_Flanders

Premium Platinum
Aug 22, 2009
48,225
89,215
AFL Club
Richmond
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76'ers
If the objective of football was to gather members, and not finals.
Except history has shown clubs with secure stable and financially sound off field operations are more likely to weather a down turn and regroup more quickly

Well funded footy departments, recruiting networks, medical, and so on don't get funded by thoughts and prayers (as it took Richmond 30 years to figure out)
 

RussellEbertHandball

Flick pass expert
Nov 16, 2004
57,135
77,170
SE Oz
AFL Club
Port Adelaide
Other Teams
The Mighty Blacks
:thumbsu: 60k

No detail on pokies revenue/profits, guess that will come out.
The $3.6m raised as donations to expand the Hangar facilities, is real cash that has been raised from fans and corporates, probably using the benefits associated with Australian Sports Foundation tax deductible status, but it's still a decent effort as they aren't going to sell 1 membership for the price of 2 to raise the funds. How much would those fans have spent on other items if they didn't make a donation to the Hangar expansion project?

If you look at the cash flow statement it says
Receipts from grants and donations $7,988,313 (2018) $1,020,775 (2017)

The Finance Director's report says
Capital Campaign Fundraising
The capital campaign to finance The Hangar expansion project has seen an outstanding outcome in 2019. An additional $7.6 million was received during the year, including a Federal Government grant of $4 million to be applied to additional facilities to be shared with the Paralympics Australia. Amounts pledged to date in relation to the project total $13.3 million.

So the $4m government grant only a small amount has gone thru the P&L in 2019 as the following note to the financials states;

12. OTHER LIABILITIES

Current
Other liabilities $3,745,780 (2019) $- (2018)

Other liabilities represents unspent grant funds received by the Company in relation to the Hangar Expansion.

ie that is portion of the $4m Government grant not spent yet, as $254,220 which is shown in note 3 (a) as Non-Operating Revenue. If the bottom line included the $4m from government then fair enough to make an adjustment. That will happen next year when the remaining $3,745,780 is spent and the liability is removed.

Of the $3,988,313 shown as Fundraising and donation revenue in note 3(a) under Non-Operating Revenue they say - *Fundraising and donation revenue includes $3,636,623 of funds received from donors in relation to the Hangar Expansion

Not sure why they would say the $352k fundraising and donations is considered Non-Operating Revenue if they do this sort of thing every year, as last year they raised $1,020,775 and the note said $626,444 related to the Hangar expansion.
 
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theflea

Brownlow Medallist
Feb 16, 2010
24,324
27,376
victoria
AFL Club
Richmond
Tigers financials just dropped.

Off-field the Club is reportinga profit of $4.1 million for the financial year ended October 31. The Club generated total income of $92.2million, which represented an increase of 16% year-on-year. The Club is in a very sound financial position with cash reserves of $24.4 million.Off-field the Club is reportinga profit of $4.1 million for the financial year ended October 31. The Club generated total income of $92.2million, which represented an increase of 16% year-on-year. The Club is in a very sound financial position with cash reserves of $24.4 million.Off-field the Club is reportinga profit of $4.1 million for the financial year ended October 31. The Club generated total income of $92.2million, which represented an increase of 16% year-on-year. The Club is in a very sound financial position with cash reserves of $24.4 million.
-Income $92.2m
-Net Profit $4.1m
-cash reserves $24.4m
 

Kwality

Brownlow Medallist
Aug 14, 2011
20,175
6,942
Tootgarook
AFL Club
West Coast
Other Teams
Renault F1
Tigers financials just dropped.

Off-field the Club is reportinga profit of $4.1 million for the financial year ended October 31. The Club generated total income of $92.2million, which represented an increase of 16% year-on-year. The Club is in a very sound financial position with cash reserves of $24.4 million.Off-field the Club is reportinga profit of $4.1 million for the financial year ended October 31. The Club generated total income of $92.2million, which represented an increase of 16% year-on-year. The Club is in a very sound financial position with cash reserves of $24.4 million.Off-field the Club is reportinga profit of $4.1 million for the financial year ended October 31. The Club generated total income of $92.2million, which represented an increase of 16% year-on-year. The Club is in a very sound financial position with cash reserves of $24.4 million.
-Income $92.2m
-Net Profit $4.1m
-cash reserves $24.4m
Not just a PR spiel?
 

The_Wookie

Queenslander
Jul 2, 2010
32,555
30,008
Launceston
AFL Club
Carlton
Tigers financials just dropped.

Off-field the Club is reportinga profit of $4.1 million for the financial year ended October 31. The Club generated total income of $92.2million, which represented an increase of 16% year-on-year. The Club is in a very sound financial position with cash reserves of $24.4 million.Off-field the Club is reportinga profit of $4.1 million for the financial year ended October 31. The Club generated total income of $92.2million, which represented an increase of 16% year-on-year. The Club is in a very sound financial position with cash reserves of $24.4 million.Off-field the Club is reportinga profit of $4.1 million for the financial year ended October 31. The Club generated total income of $92.2million, which represented an increase of 16% year-on-year. The Club is in a very sound financial position with cash reserves of $24.4 million.
-Income $92.2m
-Net Profit $4.1m
-cash reserves $24.4m
next time link it please.

 

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